Six Questions on Obama’s Mortgage Refinance Proposal

President Barack Obama said Tuesday night in his State of the Union address that he would send a plan to Congress to allow all homeowners who are current on their mortgages to refinance. Here’s a quick look at the proposal:

How is this program different from the refinance initiative that was announced three months ago?

In October, the White House said it would change an existing program that allows homeowners with mortgages backed by Fannie Mae and Freddie Mac to refinance. That program has been up and running for years, and the White House was able to make the changes administratively, meaning they didn’t have to go to Congress for approval. The latest initiative will not be limited to borrowers with Fannie and Freddie backed mortgages, though the full details of what loans will be eligible have yet to be released. It isn’t clear, for example, whether loans that don’t meet the criteria for the existing Home Affordable Refinance Program would be eligible for this new plan.